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Avast plc2020 Year end results
3 March 2021
Disclaimer
2
This presentation has been prepared and issued by, and is the sole responsibility of, Avast plc (“Avast” or the “Company”), being the current holdingcompany of the Avast group (the “Group”).
The information and opinions presented or contained in this presentation (including forward-looking statements) speak as of the date hereof (unlessotherwise stated) and are subject to updating, revision, verification and amendment without notice and such information may change materially.Nothing in this presentation should be considered as a profit forecast.
This presentation includes forward-looking statements. The words "expect", "anticipate", "intends", "plan", "estimate", "aim", "forecast", "project" andsimilar expressions (or their negative) identify certain of these forward-looking statements. These forward-looking statements are statements regardingthe Group’s intentions, beliefs or current expectations concerning, among other things, the Group's results of operations, financial condition, liquidity,prospects, growth, strategies and the industry in which the Group operates. The forward-looking statements in this presentation are based onnumerous assumptions regarding the Group’s present and future business strategies and the environment in which the Group will operate in the future.Forward-looking statements are not guarantees of future performance and involve inherent known and unknown risks, uncertainties and contingenciesbecause they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance orachievements of the Group to be materially different from those expressed or implied by such forward-looking statements. Many of these risks anduncertainties relate to factors that are beyond the Group's ability to control or estimate precisely, such as future market conditions, currencyfluctuations, the behaviour of other market participants, the actions of regulators and other factors such as the Group's ability to continue to obtainfinancing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Group operates or in economic ortechnological trends or conditions.
All forward-looking statements in this presentation are based upon information known to the Company on the date of this presentation. Accordingly, noassurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward-lookingstatements, which speak only at their respective dates. Additionally, forward-looking statements regarding past trends or activities should not be takenas a representation that such trends or activities will continue in the future. Other than in accordance with its legal or regulatory obligations (includingunder the UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), the Company undertakes noobligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Nothing in thispresentation shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.
This presentation does not constitute or form part of any offer or invitation to purchase any securities of any person nor any offer or invitation to sell orissue, or any solicitation of any offer to purchase or subscribe for, any such securities.
Agenda
3
FY Highlights & Business Overview: Ondrej Vlcek, CEO
FY Financial Results & 2021 Guidance: Phil Marshall, CFO
Q&A
1
2
3
4
FY Highlights:Ondrej Vlcek, CEO
1
Continued Progress of Business Priorities
5
Strong full year financial performance, driven by successful execution on strategy and continued investment:
• Customer experience initiatives reducing friction and supporting improving retention trends
• Localisation program helping drive global growth with customers up 16% in underpenetrated target markets
• Continued strong R&D in the security engine and product set;
- deeper move into privacy with BreachGuard
- development of integrated Avast One solution with initial Beta test in Australia
• Effective SMB turnaround: streamlined organisation with targeted products and enhanced distribution
• Ongoing talent development and recruitment with 6 new senior appointments since start of 2020
• Disciplined capital allocation enables commitment to the dividend and investment in higher value business
• Deeper integration and promotion of social responsibility and ESG initiatives
Socially Responsible Approach
6
• Employees
• Flexible working approach with work from anywhere contracts & unlimited time-off option
• Every full-time employee received one-time RSU grant at 40% of base salary, including maternity leavers
• Global diversity program focused on gender balance, including membership of the 30% club. Femalerepresentation on the Board (30%) and on the executive team (40%)
• Communities
• $25m COVID-19 donation, in addition to $4m charitable donations via the Avast Foundation
• Avast continued its long track record of creating social value through broader community engagement insuch areas as palliative care, early childhood intervention and education
• Employee volunteering at local food banks, fundraising, donating blood and translating medical materials
• Environment• Carbon neutral commitment and member of the Gold Standard Org (emissions offset program)
FY Financial & Operating Highlights
7
• Strong overall results with:
• +7.1% organic billings growth(1) and +7.9% organic revenue growth(1) driven by double-digit revenuegrowth in our Consumer Desktop business
• Adjusted EBITDA margin stable at 55.5%(2)
• Unlevered Free Cash Flow $451m, +6.2%, supporting further deleveraging to 1.5x LTM EBITDA
• Adjusted Net Income $360m, up +11.8%, adjusted fully diluted EPS +9.8% at $0.35 per share
• Desktop operating KPIs performed strongly, including customers up +7.9% to 13.62m from 12.62m at 2019year-end, supported by continued growth from the localisation program (+16% customers growth)
• Proposed final dividend(2) payable in June 2021 of 11.2 cents per share, total dividend for the year of 16.0cents per share, up 8.8%
Notes: (1) Growth figures excluding acquisitions, business disposals, discontinued business and impact of FX. Excludes current period billings and revenue of acquisitions until the first anniversary of their consolidation. FX impact calculated by restating 2020 actuals to 2019 FX rates(2) Final dividend represents 40% of 2020 Levered Free Cash Flow less interim dividend of 4.8 cents per share paid in October 2020
Continued Strength in Consumer Direct Desktop
8
Notes:(1) Represents number of customers as at Year End(2) Average Revenue Per Customer in Consumer Desktop (3) Average Products Per Customer in Consumer Desktop
12.6213.62
2019 YE 2020 YE
EoP customers(1)
(m)
51.0253.34
2019 YE 2020 YE
ARPC(2)
($)
1.45 1.50
2019 YE 2020 YE
APPC(3)
(x)
• End of period customers growth c.1M YoYdriven by both strong new customer acquisitionand further improvement in retention activities
• Customer growth in both established marketssuch as USA (+6%), UK (+6%), and targetcountries (+16%) driven by strong double-digitgrowth in Brazil, Argentina, Mexico, Japan,Ukraine and South East Asia, and mid-singledigit growth in Russia
• Strong cross sell activities primary driver ofAPPC and ARPC improvements
Resilient User Base Supported by Organic Installs
9Notes: (1) Desktop freemium includes both AV and CCleaner products(2) Consumer desktop active users
435M+Active Total Users
IPO 2020
435M+Active Total Users
250M+Desktop Users(1)
290M+Desktop Users(1)
• Install quality focus, pivoting away from PPI
• Organic installs resilient, PPI installs reduced byc.20% in 2020. Expect similar in 2021
• 46 countries with 1M+ monthly active users(2)
• Free to paid conversion rates increased everyyear since IPO, with organic installs nowconverting at 8x the rate of PPI installs
• Desktop customer penetration at 5.4% continuesto provide significant growth headroom
43%57%
Diversification Evidences Quality of Customer Base
10
Notes: (1) AV products are represented by Consumer Direct AV including Mobile AV and SMB AV products. Proportion calculated out of total billings excluding discontinued business (discontinued business including Jumpshot)(2) Share of customers with products that are compatible with desktop, mobile and tablet.
43%57%
Multi platform+ 21%pts versus IPO
Multi-Platform Customers(2)AV/non-AV Share of Billings(1)
Single platform(21)%pts versus IPO
AV(9)%pts versus IPO
non-AV+9%pts versus IPO
Localisation Approach in Target Markets is Working
11
Target markets
Year-on-year customer growth
+17%
+6%
+11%+33%
+16%
+997,000+7.9%
Total Desktop Customer
Growth
+387,000Target
Markets
+19%
+24%
Localisation: Leveraging Brazil Learnings in Mexico
12
10+ years localisation focus
BRAZIL
4 years localisation focus
MEXICO
19.8MFreemium Users
1.2MPaying customers
6%Penetration
8.2MFreemium Users
0.2MPaying customers
2%Penetration
Large existing freemium user base
Adapt product & narrative to local demographics
Local currency pricing & expansion of local payment
methods
B2C content marketing to educate users, increase share of voice and strengthen local brand awareness
Mexico on the exact same trajectory as Brazil after 4 years
Billings Growth Strength From Desktop & SMB
13
$63.6m
$(2.9)m $(2.6)m
$3.4m
$61.6m
79% 8% 8% 5% 100%Segment
% of total(2)
+9.5% (3.8)% (3.6)% +7.6% +7.1%Organic Growth %(1)
Notes: (1) Growth figures excluding acquisitions, business disposals, discontinued business and impact of FX. Excludes current period billings of acquisitions until the first anniversary of their consolidation. FX impact calculated by restating 2020 actuals to 2019 FX rates(2) Total Group excluding acquisitions, business disposals and discontinued business, numbers rounded to the nearest whole number
Consumer Direct Desktop
Consumer Direct Mobile Consumer Indirect SMB Group
14
$71.3m
$(3.0)m $(2.6)m $(0.1)m
$65.5m
+11.3% (4.0)% (3.7)% (0.3)% +7.9%
Revenue Growth Underpinned by Core Strength in Desktop
Organic Growth %(1)
Consumer Direct Desktop
Consumer Direct Mobile Consumer Indirect SMB Group
Segment
% of total(2)79% 8% 8% 5% 100%
Notes: (1) Growth figures excluding acquisitions, business disposals, discontinued business and impact of FX. Excludes current period billings of acquisitions until the first anniversary of their consolidation. FX impact calculated by restating 2020 actuals to 2019 FX rates(2) Total Group excluding acquisitions, business disposals and discontinued business, numbers rounded to the nearest whole number
High-single digit growth
High-single digit decline2020 Guidance Mid-single
digit growthLow-single digit decline
Mid-single digit growth
Strong Consumer Desktop Performance
15
Notes: (1) Excluding acquisitions, business disposals and discontinued business. Excludes current period billings and revenue of acquisitions until the first anniversary of their consolidation(2) Growth figures excluding acquisitions and impact of FX. Excludes current period billings and revenue of acquisitions until the first anniversary of their consolidation. FX impact calculated by restating 2020 actuals to 2019 FX rates
Adj. Revenue ($m)
• 11.3% organic revenue growth in line withguidance of low double-digit growth
• Strong growth driven by improving retentionrates, while adding net c.1m new customers
• Localisation approach in target marketscontributing meaningfully to growth with+16% customer growth
• Strong privacy performance, including almost½ million new Anti-Track licenses
Adj. Billings ($m)
% of group total(1) 78% 79% 77% 79%
668.3 727.4
632.9 699.7
2019 2020 2019 2020
9.5%(2)
11.3%(2)
Mixed Performance in Consumer Mobile
16
9% 8% 9% 8%
Consumer Mobile Overall
• (4.0)% organic revenue decline ahead ofguidance of high-single digit organic revenuedecline
Direct to Consumer (D2C)
• Solid 6.9% organic revenue growth despiteimpact from cross-platform desktopsubscriptions
Partners
• Disappointing (10.7)% revenue contractiondriven by mixture of legacy losses, reducedpartner marketing budgets and renegotiatedterms
77.3 74.1 75.4 72.1
2019 2020 2019 2020
(3.8)%(2) (4.0)%(2)
Adj. Revenue ($m)Adj. Billings ($m)
% of group total(1)
Notes: (1) Excluding acquisitions, business disposals and discontinued business. Excludes current period billings and revenue of acquisitions until the first anniversary of their consolidation(2) Growth figures excluding acquisitions and impact of FX. Excludes current period billings and revenue of acquisitions until the first anniversary of their consolidation. FX impact calculated by restating 2020 actuals to 2019 FX rates
Partner Business in Turnaround Mode
17
Background
• Sprint not renewed (2017) - $15m+ account
• COVID-19 related impact, including renegotiated terms
• T-Mobile expecting migration to Sprint platform
IoT Tenders• Current activity increasing, decisions being made• Decisions pending with Vodafone, BT, Claro, AT&T• Unsuccessful with Telefonica, LGI & Deutsche Telecom• Comcast/Charter & Orange acquired own IoT solutions
Turnaround Actions• New management team• Expanded go-to-market approach, less Telco reliance• Recent wins with Green Marbles to bundle Omni, and
with Pmovil to make Avast subscriptions available viadirect carrier billing
2018 2019 2020
Adj. Revenue ($m)
57.046.7
41.8
Challenging Consumer Indirect
18
8% 7% 9% 8%
• (3.7)% organic revenue decline behindguidance of mid-single digit growth
• Avast Secure Browser H2 search fee pick-updidn’t materialise as anticipated, despitestrong user activity and search volumegrowth (+29% YoY)
• Chrome distribution significant H2 decline,resulting from the change in the way thatChrome is offered
70.6 67.9 70.6 67.9
2019 2020 2019 2020
(3.6)%(2)(3.7)%(2)
Adj. Revenue ($m)Adj. Billings ($m)
% of group total(1)
Notes: (1) Excluding acquisitions, business disposals and discontinued business. Excludes current period billings and revenue of acquisitions until the first anniversary of their consolidation(2) Growth figures excluding discontinued business and impact of FX. Excludes current period billings and revenue of acquisitions until the first anniversary of their consolidation. FX impact calculated by restating 2020 actuals to 2019 FX rates
SMB Transition Gaining Momentum
19
5% 5% 6% 5%
• (0.3)% organic revenue decline ahead ofguidance of low-single digit organic revenuedecline
• Turnaround momentum reflected in billingsperformance, with 7.6% full-year organicgrowth, and 15.0% H2 organic growth
• Direct online strength more than offsettingchannel softness resulting from pandemic
Adj. Revenue ($m)Adj. Billings ($m)
% of group total(1)
Notes: (1) Excluding acquisitions, business disposals and discontinued business. Excludes current period billings and revenue of acquisitions until the first anniversary of their consolidation(2) Growth figures excluding business disposals and impact of FX. Excludes current period billings and revenue of acquisitions until the first anniversary of their consolidation. FX impact calculated by restating 2020 actuals to 2019 FX rates
45.9 48.4 49.2 48.0
2019 2020 2019 2020
(0.3)%(2)7.6%(2)
20
FY Financial Results:Phil Marshall, CFO
2
2020 Financial KPIs
21
Organic Billings growth(1)
$922.0m FY20 or+1.2% at actual rates
Led by consumer desktop
+7.1%
Organic Revenue growth(1)
$892.9m FY20 or+2.3% at actual rates
Led by consumer desktop
+7.9%
Adj. EBITDAvs. $483.0m FY19
17bps margin expansion to 55.5%
+2.6% at actual rates
$495.5m
Adj. Net Incomevs. $322.3m FY19
343bps margin expansion to 40.3%
+11.8% at actual rates
$360.2m
Unlevered FCF
Total UFCF $451.1m vs.$424.6m FY19
+6.2%
Adj. Diluted EPSvs. $0.32 FY19 (2)
+9.8% at actual rates
$0.35
Notes: (1) Growth figures excluding acquisitions, business disposals, discontinued business and impact of FX. Excludes current period billings and revenue of acquisitions until the first anniversary of their consolidation. FX impact calculated by restating 2020 actuals to 2019 FX rates(2) Based on net income attributable to equity holders of parent
22
FY 2020 FY 2019 Change $ Change % Change % (excluding FX)(1)
Billings 922.0 911.0 11.0 1.2 1.8
Acquisitions 0.1 0.0 0.1 n/a n/a
Disposal Managed Workplace (SMB) 0.0 1.0 (1.0) n/a n/a
Discontinued Business 4.2 48.9 (44.7) (91.4) (91.4)
Billings excl. Acquisitions, Disposals and Discontinued business 917.7 861.1 56.6 6.6 7.1
Adj. Billings ($m)
FY 2020 FY 2019 Change $ Change % Change % (excluding FX)(1)
Revenue 892.9 873.1 19.8 2.3 2.8
Acquisitions 0.2 0.0 0.2 n/a n/a
Disposal Managed Workplace (SMB) 0.0 1.0 (1.0) n/a n/a
Discontinued Business 5.1 45.0 (39.9) (88.6) (88.6)
Revenue excl. Acquisitions, Disposals and Discontinued business 887.6 827.2 60.4 7.3 7.9
Adj. Revenue ($m)
Notes: (1) Growth figures excluding impact of FX. FX impact calculated by restating 2020 actuals to 2019 FX rates
Billings and Revenue Performance
Increasing Deferred Revenue Balance Supporting Future Growth
23
> 1 year
≤1 year
Deferred Revenue ($m) (1)
412459
54
38
FY 2019 FY 2020
466
4976.5%
8 %
92 %
• Subscription billings paid upfront andrecognised equally over the length of thesubscription period. Deferred revenuerepresents the balance still to be recognisedas revenue in future periods
• Impact of multi-year to 1-year subscriptionshift in H2 reflected in the >1year deferredrevenue balance
• $497m deferred revenue balance, of which$459m to be recognised in 2021
Notes:(1) Adjusted for Jumpshot balance as at 31 December 2019. There is no deferred revenue of Jumpshot as at 31 December 2020.
426.8 433.1 446.3 459.7
2019 2020 2019 2020
Strong Billings & Revenue Performance
24
Notes: (1) Growth figures excluding acquisitions, business disposals, discontinued business and impact of FX. Excludes current period billings and revenue of acquisitions until the first anniversary of their consolidation. FX impact calculated by restating 2020 actuals to 2019 FX rates
459.6 469.1 451.3 452.9
2019 2020 2019 2020
H2
Adj. Billings Performance ($m) Adj. Revenue Performance ($m)
9.2%(1) 5.0%(1)6.6%(1)
9.1%(1)
H1 H2H1
25
EBITDA Margin % Comment
FY 2019 Actual 483 55.3%
Organic Revenue growth 58 251bps Strong revenue growth led by consumer desktop
Discontinued Business (15) 84bps Group margin rate upside due to lower profitability of Jumpshot
FX impact (6) (39)bps Negative FX impact on revenue outweighed positive impact on costs
Investment / Disposal / Other (24) (279)bps R&D and S&M investments supporting growth initiatives
FY 2020 Actual 496 55.5%
Adj. EBITDA ($m)
Revenue Growth Continues to Fund Re-Investment
Continued Strong Cash Flow Generation
26
Notes: (1) Change in deferred revenue and deferred COGS as well as reversal of COGS deferral adjustments.(2) Cash tax in 2019 excludes $(49.4)m Dutch exit tax treated as an exceptional item. (3) Change in working capital excludes change in deferred revenue and deferred COGS as these are already included in Adj.Cash EBITDA(4) Cash Conversion defined as Unlevered Free Cash Flow / Adj. Cash EBITDA
($m)
FY 2020 FY 2019
Adj. EBITDA 496 483
Adj. EBITDA to Adj. Cash EBITDA(1) 27 36
Adj. Cash EBITDA 523 519
Capex (15) (30)
Cash Tax(2) (52) (55)
Change in Working Capital(3) 20 (10)
Donation (25) -
Unlevered Free Cash Flow 451 425
Cash Conversion(4)
Cash Interest and Lease Repayments (37) (54)
Levered Free Cash Flow 414 370
86%
A
82%
• WC impacted by timing &2yr to 1yr subscription shift
• One-time donation forresearch and developmentinitiatives related toCOVID-19
• Actively managing capitalstructure with further$200m voluntarily paid in2020
• LFCF excludes $73mrepaid to Ascential (incl.$8m exit costs) and further$17m of personnel andnon-personnel costsrelated to JS wind down(investing activities)
A
C
B
B
C
• Adjusted EBITDA leverage 1.5x (1)
• Voluntary repayment of $200m on topof mandatory repayment of $62m
• Cash position of $175m after $262mdebt repayment, $105m final 2019dividend & $49m interim 2020dividend, $25m COVID donations,$73m repayment to Ascential (incl.$8m exit costs) and further $17m ofpersonnel and non-personnel costsrelated to JS wind down
Deleveraging Arising From Business Model Strength
27
1.8x1.5x
Dec-19 Dec-20
Adj. EBITDA Leverage(1)
885726
Dec-19 Dec-20
Net Debt ($m)(1)
(18)% (0.3)x
Notes: (1) Leverage calculated as x Adj. LTM EBITDA. Net debt leverage per banking covenant calculation 1.4x as of 31 December 2020 due to adjustment of Holding and unrestricted subsidiaries.
Balanced Capital Allocation Approach
28
Notes: (1) Net debt as of 31 Dec 2018 was restated for comparative purposes for opening balances of IFRS 16 adjustment. Dividend in respect of 2018 on an annualized basis. In June 2019 the Group paid dividend of 8.6 cents per share in respect of the period 15 May 2018 to 31 December 2018 (13.6 cents per share on an annualized basis). Total dividend paid was $84m (annualized $132m)(2) Expected total dividend based on 40% of final LFCF
1,210885 726
2018 2019 2020
Net Debt / Leverage($m)
Dividends ($m)
Capex ($m)
Acquisitions / M&A
2.7x
1.8x1.5x
• Existing debt facility runs to September 2023• Deleveraging through strong cash generation
2018 2019 2020
149165
• Double-digit dividend growth in the year of COVID• No change to policy
1730
15
2018 2019 2020
2.0%
3.4%
1.7%
• Low Capex with R&D expense taken to P&L• Cloud migration would lead to lower Capex %
% of revenue
• Revenue growth focus with possible short-term earnings dilution trade-off
• Prioritising Identity/Privacy & SMB, including technology to accelerate roadmap delivery
• Partnership possibilities
132
(2) (3)
(1)
New Topline Reporting
29
Current structure FY 2020 Partner Mobile subscription New structure FY 2020
Consumer Direct Desktop 699.7 30.3 Consumer Direct 730.1
Consumer Direct Mobile 72.1 (41.8) (30.3)
Consumer Indirect 67.9 41.8 Consumer Indirect 109.6
Discontinued Business 5.1 Discontinued Business 5.1
SMB 48.0 SMB 48.0
Group Total 892.9 Group Total 892.9
Consumer Desktop KPIs Mobile subscription Consumer Direct KPIs
EoP Customers 13.62m 2.85m EoP Customers 16.47m
APPC 1.50 1.00 APPC 1.41
ARPC $53.34 $10.49 ARPC $45.60
Adj. Revenue($m)
2021 Guidance
30
Full Year Guidance
2021 guidance
Group Organic Revenue Growth 6 – 8 percent range
Consumer Direct Organic Revenue Growth• EoP Customers• APPC (Average Product Per Customer)• ARPC (Average Revenue Per Customer)
High-single digit increaseLow-single digit increaseLow-single digit increaseHigh-single digit increase
Consumer Indirect Organic Revenue Growth Mid-single digit decline
SMB Organic Revenue Growth Mid-single digit increase
Adj. EBITDA margin % Broadly flat
Dividend Distribution c.40% levered free cash-flowFinal 2020 payable in June(1)
Notes: (1) The Group intends to maintain its dividend the policy of 40% LFCF. Final dividend = 40% 2020 LFCF less interim dividend paid in October 2020
Key Messages
31
• Strong 2020 performance led by Consumer Desktop, with almost 1 million new customers added
• Localization delivered another strong performance with 16% customer growth
• Healthy revenue growth expected in 2021, reflecting strength of our freemium business model
• Avast has adapted well in response to COVID-19, with a primary focus on employees and communities
• Socially responsible approach to business, further evidenced in 2020
• Long-term opportunity for Avast continues to expand with growth in the cybersecurity market
• Avast well positioned to execute on its growth aspirations
Appendix
Adj. Billings and Revenue Trend by Segment
33
Adj. Billings($m)
H1 H2 FY H1 Organic growth %(1)
H2 Organic growth %(1)
FY Organic growth%(1)
Consumer Direct Desktop 370.6 356.8 727.4 11.8% 7.2% 9.5%
Consumer Direct Mobile 37.1 37.0 74.1 (4.7)% (2.9)% (3.8)%
Consumer Indirect 35.7 32.2 67.9 6.0% (12.5)% (3.6)%
SMB 23.3 25.1 48.4 0.7% 15.0% 7.6%
Discontinued Business 2.4 1.8 4.2 n/a n/a n/a
Group Total 469.1 452.9 922.0 9.2% 5.0% 7.1%
Adj. Revenue($m)
H1 H2 FY H1 Organic growth %(1)
H2 Organic growth %(1)
FY Organic growth%(1)
Consumer Direct Desktop 334.4 365.3 699.7 9.1% 13.3% 11.3%
Consumer Direct Mobile 36.5 35.6 72.1 (4.4)% (3.6)% (4.0)%
Consumer Indirect 35.7 32.2 67.9 6.0% (12.6)% (3.7)%
SMB 23.2 24.8 48.0 (6.5)% 6.4% (0.3)%
Discontinued Business 3.3 1.8 5.1 n/a n/a n/a
Group Total 433.1 459.7 892.9 6.6% 9.1% 7.9%
Notes: (1) Growth figures excluding acquisitions, disposals and impact of FX. Excludes current period billings and revenue of acquisitions until the first anniversary of their consolidation. FX impact calculated by restating actuals to FX rates of previous year
Key Financial Assumptions
34
Full Year Guidance
2021 guidance
Depreciation & Amortisation c. 3% of Adj. Revenue
Capital Expenditure c. 2% of Adj. Revenue
Finance Cost and Lease Repayments(1) $30m P&L / $32m CF
Effective Tax Rate 18%
Cash Tax In line with Adjusted Income Tax
Net Working Capital(2) $10m outflow
Number of shares• Basic weighted average number of shares • Number of shares used in computing dilutive EPS
1,034m1,048m
Exceptional Items• Share-based expense • Amortisation of acquired intangibles
$54m P&L$23m P&L
Notes: (1) Finance costs include interest costs, amortisation of arrangement fees, unwinding of discount, IFRS 16 related interest and other finance costs.(2) Excludes change in deferred revenue and deferred COGS; includes only change in accounts receivable, inventory and accounts payable
2020 Discontinued Overview
35
Notes: (1) Jumpshot 2020 costs represent January BAU costs plus operating expenses until closure
Excluded from headline organic growth Included in EBITDA
2020 2019 vLY 2020 2019 vLY 2020 2019
Toolbar/clean-up 4 9 (5) 4 9 (5) 100% 100%
Jumpshot (1) 1 36 (35) (4) 6 (10) n/a 16%
Total Discontinued Business 5 45 (40) 0 15 (15) 6% 32%
Revenue ($m) EBITDA ($m) EBITDA margin
Exceptional Items
36
FY 2020 FY 2019
Share-based compensation(1) (23) (25)
Amortisation of acquisition intangibles (66) (88)
Acquisition costs - (2)
Jumpshot wind down costs (25) -
COVID-19 donations (25) -
Exceptional operating costs (50) (2)
Net gain on disposal of business operation - 18
Unrealised FX gain/loss on EUR tranche of bank loan (62) 14
Tax impact of IP transfer (6) (6)
Tax impact of disposal of business operation - (2)
Tax impact of donations 5 -
Tax impact of adjusting items(2) 11 20
Exceptional finance and tax (expense)/income (52) 26
Exceptional items, share-based compensation and amortisation of acquisition intangibles ($m)
Notes: (1) FY 2020 includes $1m employer’s cost on share-based payments exercise (FY 2019: $4m)(2) Consists of tax impact of amortization of acquisition intangibles, FX gain/loss on intercompany loans and other adjusting items
Foreign Exchange Rates Trend (X-rates to US Dollar)
37
Currency H1 2020 average YoY % H2 2020
average YoY % FY 2020 average YoY %
AUD 0.66 (7.0)% 0.72 4.6% 0.69 (1.3)%
BRL 0.21 (18.5)% 0.18 (26.4)% 0.20 (22.4)%
CAD 0.74 (1.4)% 0.75 (0.7)% 0.74 (1.1)%
CZK 0.04 (4.3)% 0.04 1.8% 0.04 (1.3)%
EUR 1.10 (2.5)% 1.17 5.7% 1.14 1.5%
GBP 1.27 (1.9)% 1.30 3.6% 1.29 0.8%
New Topline Reporting – Historical Overview
38
Adj. Billings($m)
FY 2020 FY2019 FY20182020
Organic growth (1)
2019 Organicgrowth(1)
Consumer Direct 759.3 698.2 641.4 9.4% 11.7%Consumer Indirect 110.1 117.9 122.6 (6.5)% (4.1)%Discontinued Business 4.2 48.9 37.7 n/a n/aSMB 48.4 45.9 60.5 7.6% (6.0)%Group Total 922.0 911.0 862.1 7.1% 8.3%
Adj. Revenue($m)
FY 2020 FY2019 FY20182020
Organic growth (1)
2019 Organicgrowth(1)
Consumer Direct 730.1 661.6 605.5 11.1% 10.9%Consumer Indirect 109.6 117.3 122.7 (6.5)% (4.6)%
out of this Partner / carriers 41.8 46.7 57.0 (10.7)% (19.9)%Discontinued Business 5.1 45.0 35.5 n/a n/aSMB 48.0 49.2 63.3 (0.3)% (5.8)%Group Total 892.9 873.1 827.0 7.9% 7.3%
Notes: (1) Growth figures excluding acquisitions and impact of FX. Excludes current period billings and revenue of acquisitions until the first anniversary of their consolidation. FX impact calculated by restating actuals to FX rates of previous year
Operational KPIs($m)
FY 2020 FY2019 FY2018
End of Period Customers 16.47m 15.55m 15.15mAverage Products Per Customer 1.41 1.36 1.32Average Revenue Per Customer $45.60 $43.11 $41.30
Net Income Trend
39
($m) H1 H2 FY H1 YoY% H2 YoY% FY YoY%
Adjusted EBITDA 241.4 254.1 495.5 2.1 3.1 2.6
Adjusted D&A (10.6) (11.2) (21.8) 1.8 (3.9) (1.0)
Adjusted Finance costs (21.6) (15.5) (37.0) 45.7 28.4 39.7
Adjusted PBT 209.2 227.5 436.7 12.5 6.2 9.2
Adjusted Income tax (39.4) (37.0) (76.4) (4.4) 7.5 1.7
Adjusted Net Income 169.8 190.4 360.2 14.6 9.4 11.8
Adjusted ETR 19% 16% 18% (145)bps (241)bps (193)bps
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